SDACO needs a machine for steel operations. It has two options: The firm can by the machine with a single cash payment now of the amount $40,000. Another alterative to pay $6,000 down payment and five equal annual payments. The salvage value at end of year 5 is negligible. If the company's MARR is 8% . What is the value of the annual payments so that the two options are indifferent? 9158.2 9132.6 8515.5 10018.3
SDACO needs a machine for steel operations. It has two options: The firm can by the machine with a single cash payment now of the amount $40,000. Another alterative to pay $6,000 down payment and five equal annual payments. The salvage value at end of year 5 is negligible. If the company's MARR is 8% . What is the value of the annual payments so that the two options are indifferent? 9158.2 9132.6 8515.5 10018.3
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter10: Long-lived Tangible And Intangible Assets
Section: Chapter Questions
Problem 8Q
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